There's grey area here.
(1) "Hawaii does not tax qualifying distributions from an employer-funded pension plan."
From 1983-1991 I made a mandatory 2% contribution to UCRP. At that time the employer made similar contributions. (1991-2007 I made no contributions - neither did the employer as the plan was "over-funded"). So this does not appear to apply directly as I made (mandatory) contributions to the plan.
(2) My payments are not paid directly by the state of California, but by the University of California retirement system. Is this a "goverment retirement system"? I did find the statement - "The UCRP is a governmental defined benefit plan under the Internal Revenue Code section 414(d) that was established for employees of a state entity, the University of California.", which suggests it is, for this purpose.
Does this make it exempt
from Hawaii State tax despite my contributions?
My non-expert reading of HAR 18-235-7-02 ( see http://state.hi.us
/tax/har/har_235.pdf ) says that is the case, but I'm not sure what takes precedence.
I did try calling the Hawaii State tax offices. They said I'd have to find out what fraction of my pension was employer-funded from the plan to determine the fraction exempt from state taxes. I believe she had it wrong. This is the rule for private pensions.
Can you shed more light on this?